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<p>[QUOTE=&quot;coloradotokens, post: 842040, member: 17153&quot;]<font size="3"><font face="Calibri">These are all great comments on a topic which is avoided and miss under stood.&nbsp; I completely agree with the idea of having cash on hand, and gifting to heirs and relatives.&nbsp; JustCarl, I admire your passion to the hobby and thank you for your insight and opinions.&nbsp; </font></font></p><p><font size="3"><font face="Calibri">I agree that giving the collection to relatives is a good way to gift on a yearly basis, but what do the heirs and relatives do if/when they sell the collection?&nbsp; I understand that hiding cash in mattress is a decent idea, but I don’t know about the comment of not spending the money.&nbsp; If I sell something it’s because I want/ need the money for something else, not to hide it in the mattress and not spend it.&nbsp; I understand that keeping a small cash amount on hand is smart, but hiding 100k in a mattress doesn’t seem appropriate.&nbsp; </font></font></p><p><font size="3"><font face="Calibri">This tread has shown some great ideas of what to do for tax prep and estate planning, but what do you do if you’re the heir?&nbsp; </font></font></p><p><font face="Calibri"><font size="3">Let’s say your father collected for 40 years spending a combined total of 50,000 dollars and over time the value of the collection has increase to 100,000.&nbsp; At this point your father gives you the collection and he passes on several years later.&nbsp; What you do if you are the heir and you want to sell the 100,000 collection, and also for the sake of this talk you don’t want to hide it in the mattress and you do want to spend it.&nbsp; What do you do?&nbsp; It goes back to my original post that the IRS would assume a 100% tax basis since you cannot prove how much it is worth now compared to when it was given to you.&nbsp; It might have been given to you and only appreciated let’s say 10% since, now you sell the collection valued at 100k you would owe collectible gains tax on the 10% only.&nbsp; But if you got audited and there is no paper trail or receipts you would be expected to pay tax on 100% instead of 10%.</font></font></p><p><font face="Calibri"><font size="3">Now for the kicker, let’s say that your father was in that 3.5 million tax bracket, making things even more difficult.</font></font></p><p><font face="Calibri"><font size="3">What do you do if you are the owner of the estate, and coin collection?</font></font></p><p><font face="Calibri"><font size="3">What do you do if you are the beneficiary of the estate and coin collection?</font></font></p><p><font face="Calibri"><font size="3">Any ideas and opinions are greatly appreciated.</font></font></p><p><font face="Calibri"><font size="3">Thanks CT</font></font>[/QUOTE]</p><p><br /></p>

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